22-04-2025
Gold prices extend record rally as Trump escalates US Fed fears
Gold prices have repeatedly hit new highs this year, triggered by economic uncertainties surrounding tariff wars, with spot gold prices rising as high as US$3,484.32 (HK$27,178) per ounce on Tuesday.
US President Donald Trump's attacks on the US central bank boss intensified the market's safe-haven rush.
In a social media post, Trump called Federal Reserve chair Jerome Powell "a major loser" for not lowering interest rates.
He urged Powell to cut interest rates "preemptively" to help boost the US economy, saying the chair had been consistently too slow to respond to recent economic developments.
"There can be a SLOWING of the economy unless Mr Too Late, a major loser, lowers interest rates, NOW," he wrote.
In Hong Kong, gold miner stocks rose. Chifeng Jilong Gold Mining (6693) surged 13.5 percent at one point on Tuesday morning, Shandong Gold Mining (1787) rose more than 10 percent, and Zhaojin Mining Industry (1818) climbed 7.56 percent.
Spartan Capital Securities analyst Peter Cardillo said any interference with the Fed's independence is something the market does not relish.
He expects the gold price to further outperform and reach US$5,000 if Trump's attacks on Powell escalate.
STAFF REPORTER
